Central Europe could gain up to €700 billion from AI

McKinsey builds the article around an uncomfortable conclusion: Central Europe can no longer treat AI as a side technology project. According to the analysis, AI could unlock €280 billion to €700 billion of economic value in the region, equal to roughly six to 15 percent of its net turnover. Automation alone could account for more than €280 billion. The important point is that McKinsey is not speaking only about office work. Much of the value should arise in operations: production planning, materials management, sales, logistics, customer service, product development and software engineering. This is where Central Europe has a problem. About 60 percent of its economy is in industries where AI scaling is slow. McKinsey states that 88 percent of companies globally use AI in at least one function, but 94 percent have not yet achieved a significant EBIT impact. That is the difference between trying a tool and changing a company’s economics. Pilots may look good in presentations, but if they do not change an entire workflow, they will not move margins, speed or decision quality. The article also highlights the pace of model progress. Between 2019 and 2022, the capabilities of leading large language models improved by roughly two points per year on the Artificial Analysis index. Since 2024, gains have exceeded 20 points per year. Traditional multi-year corporate planning is therefore losing relevance. For Czech companies, the article matters because it discusses the region, not Silicon Valley. Central Europe has strong manufacturing, supply chains and export businesses. That is where it will be decided whether AI raises productivity or whether value shifts to companies that redesign operations faster. Terms: EBIT is operating profit before interest and taxes. AI scaling means moving from isolated pilots to everyday operations. An agentic organization is a company where AI systems perform specific tasks under human supervision.

Central Europe could gain up to €700 billion from AI

The full article is available to users registered at Hard Skills